Transeuro Energy Begins Prep Work on Armavir Prospect in Armenia
Interfax Information Services, B.V.
Friday, February 25, 2005

The Canadian corporation Transeuro Energy (formerly Indusmin Energy) has
started preparation work to explore for oil and gas at a licensed block in
the Armavir region of Armenia, Andranik Agabalian, head of the fuel and
energy resource department at the Armenian Energy Ministry, told Interfax.

He said that when the weather improves the corporation will start to carry
out field work to decide on a location for a first well. Agabalian said that
Transeuro Energy has concentrated its efforts on searching for natural gas,
given the industrial structure in Armenia, which does not have any oil
refining capacity, but which has a developed gas transportation system. As a
result, gas production for industrial use is more promising than oil
production, he said.

Agabalian said that the company has promised to invest at least $10.5
million in prospecting for oil and gas in Armavir region. The company will
continue where the U.S.-registered Armenian-American Exploration Company
(AAEC) left off in the late 1990s. AAEC drilled a 3,524-meter exploration
well 30-km north of Yerevan, but did not discover any hydrocarbons there.
The company spent $28 million on drilling and seismic exploration.

Agabalian said that in March this year an agreement is to be signed with
Transeuro Energy to carry out exploration work at another block – in the
northeast of Armenia, covering the Tavush and Lori regions.

Armenian territory is split up into six license blocks. Transeuro Energy
chose the block in the northeast based on its own research and forecasts.

Indusmin Energy was renamed Transeuro Energy in fall 2004. The company
opened an office in Armenia a little later.